Must a Chocolate Fish Coffee franchisee enter into subscription agreements for software?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.7 Software. Without limiting the generality of Section 7.1 or Section 8.1, Franchisee shall acquire and use all software and related systems required by Chocolate Fish Franchising.
Franchisee shall enter into any subscription and support agreements that Chocolate Fish Franchising may require.
Franchisee shall upgrade, update, or replace any software from time to time as Chocolate Fish Franchising may require.
Franchisee shall protect the confidentiality and security of all software systems, and Franchisee shall abide by any System Standards related thereto.
Franchisee shall give Chocolate Fish Franchising unlimited access to Franchisee's point of sale system and other software systems used in the Business, by any means designated by Chocolate Fish Franchising.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, franchisees are required to acquire and use all software and related systems mandated by Chocolate Fish Franchising. This extends to entering into any subscription and support agreements that Chocolate Fish Franchising deems necessary.
This requirement means that a new Chocolate Fish Coffee franchisee will need to budget for ongoing software subscription costs in addition to the initial franchise fee and other startup expenses. The franchisee does not have a choice regarding which software to use, and must use the software Chocolate Fish Franchising requires.
Furthermore, Chocolate Fish Coffee franchisees are obligated to upgrade, update, or replace software as directed by Chocolate Fish Franchising. This ensures that all franchise locations operate on the same technology standards, but it also means that franchisees must be prepared for additional expenses related to software upgrades or changes during the term of their franchise agreement. Franchisees must also provide Chocolate Fish Franchising with unlimited access to their point of sale system and other software systems used in the business.